Indonesia is Confident in Developing a Battery Ecosystem for More Than 500.000 Units

Indonesia is Confident in Developing a Battery Ecosystem for More Than 500.000 Units

According to Indonesia's Investment Minister Bahlil Lahadalia, he is confident that the country would build an ecosystem for batteries used in electric vehicles by the time the first batch is produced in early 2024.

He stated at the presidential palace here on Friday, "We have made several formulations (so) that the development of the (electric) car battery ecosystem continues to operate. It is planned that our production will start in the first half of 2024 in the (factory) developed by LG in Karawang.

After attending a brief discussion on the growth of the electric vehicle (EV) ecosystem, chaired by President Joko Widodo, he made the announcement.

The second is the ecosystem between CATL (Contemporary Amperex Technology Co. Limited, a Chinese company) and LG, whose construction began this year, according to the minister.

In the past, CATL collaborated with Antam, a state-owned mining company, and the Indonesia Battery Corporation (IBC) to construct a battery factory in North Maluku for US$5.97 billion, or Rp85.77 trillion.

With a market share of 32.6 percent in lithium-ion batteries, CATL is the biggest producer of electric vehicle batteries worldwide.

The construction of projects including the mining of nickel and battery components, recycling, and the installation of electric vehicle and electric motorcycle battery factories will be carried out by CATL, Antam, and IBC.

The minister stated, "This is a type of government concern in setting up for the development of products that are focused on green energy and green industry.

Lahadalia added that the government is developing the most suitable and competitive facilities for investors to promote the Indonesian EV battery ecosystem.

In order to speed up the Battery Electric Vehicle (BEV) Program, the government has adopted Presidential Regulation Number 55 of 2019.

Through the Industry Minister's Regulation Number 27 of 2020 on Technical Specifications, EV Road Map, and the Calculation of Domestic Component Level, it has also created a roadmap for the development of the BEV industry (TKDN).

By 2030, the government hopes to have produced 2.45 million two-wheeled electric vehicles and 600,000 electric vehicles with four wheels or more. While 398,530 units of two-wheeled electric cars and 132,983 units of four-wheeled electric vehicles are expected to be purchased, respectively.



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